Whether it’s perfecting a formula for chewing gum or designing an iPhone marriage proposal app, there is someone out there that can get the job done.

Whether it’s perfecting a formula for chewing gum or designing an iPhone marriage proposal app, there is someone out there that can get the job done.

These are just two projects successfully outsourced through Freelancer.com, an eBay-style website for the labour market that recently launched in Canada. The model is simple — businesses post projects, independent contractors bid against one another for jobs, and written reviews and a ratings system ensure entrepreneurs find the right person for their needs.

The concept has caused Freelancer.com to erupt into the world’s largest outsourcing and crowdsourcing website, with more than 3.6 million registered users in about 200 countries around the globe. But traffic and usership has also has spiked across the bid-for-business board, with sites like Elance.com, oDesk.com and vWorker.com, to name a few, also becoming popular tools for staffing businesses.

“I think people get it,” said Freelancer.com’s vice president David Harrison. “Being able to tap into that talent pool and the cost savings can be an enormous benefit for a small business.”

Experts say that to stay competitive, small businesses and start-ups need to get in the freelancing game. So here’s their advice on the ins and outs of outsourcing.

Save time and money

Getting a start-up on its feet can require specialized skills that stretch beyond your staff’s capabilities — from launching a website, to translation services, to bringing an app design to fruition. Hiring a freelancer with expertise relating to a specific job is often far more cost efficient than using less-specialized staff members whose time may be better spent on day-to-day tasks.

“There’s a lot of stress on entrepreneurs to get so many things done,” Lorri Rowlandson, president of Rowlandson Inc., an outsourcing advisory firm that specializes in corporate real estate strategy. “Outsourcing is going to be the distinction for small businesses to stay competitive.”

Smaller companies often have jack-of-all-trades staffers that can take on any role, but if an assignment is too specialized, the work simply gets done faster by paying someone who knows the job like the back of their hand, says Harrison.

“For small businesses, time is critical. You’re wasting time if you’re teaching yourself how to do these things,” he says. “Now you can hire someone at two o’clock in the morning when you’re sitting on the couch in your underwear.”

Keep it simple

Rowlandson advises entrepreneurs start slow to get comfortable with the idea of outsourcing tasks, especially to international freelancers. She says business owners must be straightforward when outlining a freelancer’s scope of work, and as specific as possible when assigning tasks. She also recommends they avoid colloquialisms or acronyms that could be misinterpreted if English isn’t a freelancer’s first language.

“Make sure to leverage communication tools like Skype,” she adds. “You can’t just send someone an email and expect them to get it perfect. You have to be patient.”

You get what you pay for

While Rowlandson cautions against hiring based solely on low bids, she says taking risks on new freelancers can lead to eager and affordable additions to a virtual team.

“If you accept the cheapest bid, just be prepared to spend more time making sure they’ve acclimatized to your needs,” says Rowlandson, who lists Elance.com and oDesk.com as her go-to sites.

She says her own experience of hiring a green freelancer paid off tremendously, allowing her to help shape a new out-of-office hire into the perfect complement to her staff.
Open the lines of communication

There are other pitfalls to navigate when outsourcing — especially with emerging economies logging into the online labour market — including language barriers, email-based work relationships, and a lack of security if confidential business information is exchanged. But both Rowlandson and Harrison agree that these new freelance websites help minimize risks. By delving into the freelancer’s portfolio and user reviews, they say, and ensuring open lines of communication, outsourcing can be an effective way to do business

“You’d be blown away at how extraordinarily well-educated and well-trained these freelancers are,” says Harrison. “The only limit to what you can outsource is your imagination.”

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